I'll install the latest desktop and see how it sync with my BB. If you just want to test app installs and such I'll leave off Outlook (It's a fresh install of XP in Parallels and I wasn't going to put Office on it to save disk space). But I can if you want to give that a test as well.

Update: So far no go. It sees the BlackBerry under USB devices but it tells me some other process is locking it. I tried the other USB devices listed and they give me the same error. I wonder if it's something that's a problem with just me or something common that'll be fixed with a patch?